Basware Growth Strategyfor the Years 2011-2014
Basware to focus its strategy for strong international growth.
Basware's Board of Directors and company management have adjusted the company's strategy and goals for the next 4-year period. The company will focus strongly on international growth and therefore Basware is considering to raise additional equity financing from the market.
Basware Automation Services, launched in 2009, grew 32.3 percent in 2011, and have shown their unique competitiveness internationally. In order to utilize the achieved competitive edge, the company will increase its efforts to support the growth of Automation Services.
The company aims to be the leading e-invoice company worldwide. Acquisitions will support the growth of the e-invoicing service. Its annual volume in 2011 amounted to 20.8 million transactions. The e-invoicing market is growing strongly, and Basware aims to reach the 100 million invoice mark by 2014.
According to Basware's view, the significance of the service concept will continue its solid growth in the future as well, which is the reason for marketing the company's next-generation product concept strongly also as services. The company's aim is to transfer the installations of existing customers through product updates to Software as a Service (SaaS) model to a considerable extent in the future. Service offering development will continue vigorously. Basware launched new Invoice Automation process outsourcing offering for the global market during first half of 2011. Offering new and more extensive service models to the customer will improve the company's profitability and increase its continuous net sales.
In order to accelerate international growth Basware is focusing on M&A activities.
Basware has adjusted its pricing model to be very flexible according to customer needs. From now on, software solutions will be available to customers with one-time license fee, monthly subscription, and according to the SaaS model.
The role of offshoring operations will continue to grow in the company's strategy. R&D and Automation Services operations at Basware's Indian office have already succeeded in gaining a significant role. The company is surveying the development of offshoring in order to improve profitability also with regard to new service business operations and internal support functions. The company is also investigating the possibility of new geographical regions in expanding offshoring.
Basware's long-term objectives were specified further. The new strategic guidelines facilitate strong international growth and positive development of operating profit margin. The long term target is to grow annually 15-30 percent in net sales and more than 50 percent in Automation Services. The company's long-term target for operating profit margin is 15-20 percent improving towards the end of the period.
The strategy presentation is available for download at Basware's Web site at: